Although fans of the clothing store American Apparel have been concerned about store closings, the retailer is here to stay on Penn’s campus — at least for now.
In August, the company’s stock fell 13 percent after it released reports that it received a federal subpoena because of a change in its accounting firm.
American Apparel revealed it was more than $91 million in debt. The company, founded in 1997, was also under scrutiny by the Securities and Exchange Commission.
According to the Investor Relations section of the American Apparel website, the company’s stock — which was at an all-time high of $16.80 per share in December 2007 — plummeted in August to a low of 66 cents per share. The stock has steadied to around $1.20 per share in the last month.
Despite this financial turmoil, company spokesman Ryan Holiday said the company has no plans to file for bankruptcy, close stores, lay off workers or outsource manufacturing.
Andrew Prinz, an assistant manager for the store at 3661 Walnut St., said he has confidence in the company and does not know of any future store closings. The retailer is one of more-than 285 American Apparel stores around the world.
Prinz said there has been “a lot of misinformation” and “rumor” about the business’s finances, and many other companies have experienced worse troubles during the difficult economy.
He added that he thought public scrutiny of the corporation was inevitable, as American Apparel has been “wildly successful” and its founder and chief executive officer Dov Charney has become a contoversial public figure.
The company is known for its racy advertisements featuring semi-nude women, but Charney himself is publicly notorious for employees’ allegations against him. These widely publicized accusations include wearing underwear around his Los Angeles office, sexually harassing his employees and calling them derogatory names.
Noelle Barcenas, a Los Angeles native and first-year master’s of business administration student, said she thought the reputation of the company precedes it because of its CEO and controversial advertising.
Barcenas also said she does not regularly shop at American Apparel for her everyday attire. “I only come here for anything that requires a theme,” such as 1970s or ’80s costume parties, she said.
Even though its public image has long made it the go-to store for spandex, leggings and other nontraditional clothing, Prinz said the company has made a “big shift in style” to a “more sophisticated” and professional type of clothing.
“It’s an exciting time to be at the company, if you ask me,” he said.
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